Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» Why AAIC Should trade above RS.50/-
by wisdom79 Today at 7:46 pm

by wisdom79 Today at 7:42 pm

» Pakistan’s trade with Sri Lanka comes to a halt
by soileconomy Today at 7:35 pm

» Daily Stock Market Update
by Teller Today at 7:18 pm

» Market will test 4700
by karuna2 Today at 12:25 pm

» Keep eye on Politics
by samaritan Today at 11:49 am

» CSE from Dawn of Peace to Rebirth of Terrorism
by Yahapalanaya Today at 9:59 am

» EAST Steady at 18
by mark Today at 9:25 am

» New Support Level 5300
by hammurabi Yesterday at 8:47 pm

» UNION BANK (UBC) to be takeover by Union bank of india
by Lucky Gamage Yesterday at 6:26 pm

» LIOC upward curve
by karuna2 Yesterday at 5:57 pm

» SEC yet to publish its 2017 Annual Report
by Teller Yesterday at 5:10 pm

» HNB Assurance March net down 83-pct
by Teller Yesterday at 1:18 pm

» PABC net down 13-pct in March; loans contract
by Teller Yesterday at 1:15 pm

» Indian stocks jumped to record highs
by Teller Yesterday at 1:13 pm

» modi wins-India to no1 in the world
by Teller Yesterday at 1:07 pm

» Hayleys revenue up 34% YoY to Rs 219 bn in FY 18/19
by Teller Yesterday at 1:02 pm

» undervalued stock
by Teller Yesterday at 1:00 pm

» CIND , 10% guaranteed return
by Teller Yesterday at 12:57 pm

by Agape Yesterday at 8:52 am

» Reputation???
by Uaecoindubai Wed May 22, 2019 7:12 pm

by lokka1 Wed May 22, 2019 12:55 pm

» Sri Lanka’s Top 10 Imports
by Gajaya Wed May 22, 2019 11:16 am

» Top 10 Small Scale Business ideas & Opportunities in Sri Lanka 2019
by Gajaya Wed May 22, 2019 11:15 am

» when bank lending rates put down ?
by nuwanmja Wed May 22, 2019 11:01 am

» Sri Lanka’s largest pension fund EPF return to Colombo Stocks
by wisdom79 Tue May 21, 2019 10:46 pm

» Sri Lanka's EPF enters stock market with blood in the streets
by God Father Tue May 21, 2019 8:21 pm

» Sri Lanka caught in the big power conflicts
by God Father Tue May 21, 2019 8:16 pm

» High Profile Selling at EAST
by Uaecoindubai Tue May 21, 2019 4:43 pm

» A Trader’s Guide to FIX Engine
by Brenda John Tue May 21, 2019 11:24 am

» Reasons for market to crash
by Uaecoindubai Tue May 21, 2019 10:08 am

» ගෙවුම් ශේෂය, වාහන බලපත් හා ඩොලරයේ මිල
by ChooBoy Mon May 20, 2019 5:59 pm

» Terrorism and its Impact on the Sri Lankan Economy
by ChooBoy Mon May 20, 2019 5:41 pm

» Sri Lanka Equity Market Place
by Sstar Mon May 20, 2019 4:36 pm

» Sri Lanka Equity Market Talk
by Sstar Mon May 20, 2019 12:23 pm

» Sri Lanka Equity Market Help
by Sstar Mon May 20, 2019 12:18 pm

by stockback Sun May 19, 2019 5:20 pm

» Look PAP Amazing company
by Uaecoindubai Sun May 19, 2019 5:13 pm

» Sri Lanka Equity Market Place
by Uaecoindubai Sun May 19, 2019 5:13 pm

by Ahcha Sun May 19, 2019 4:40 pm

» Do not be greedy, rely on small profits Guide to the markets
by Asoka Samarakone Sun May 19, 2019 12:11 pm

» 6 % of EPF funds in stock market
by hammurabi Sat May 18, 2019 3:47 pm

» Weekly Stock Market Roundup
by Insights Equity Sat May 18, 2019 12:54 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » CB most likely to keep rates steady

CB most likely to keep rates steady

Go down  Message [Page 1 of 1]

1CB most likely to keep rates steady Empty CB most likely to keep rates steady on Fri Dec 30, 2016 1:04 am


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Reuters: Sri Lanka’s Central Bank is most likely to keep its key interest rates steady on Friday, even as some economists expect further tightening to ease pressure on the rupee following the Fed rate hike earlier in the month, a Reuters polls showed.

The Central Bank has already tightened its monetary policy stance three times since December 2016 to fend off pressure on a fragile rupee and curb stubbornly high credit growth that has pushed up inflation.

The tightening has already weighed on the economy, which recorded a 4% year-on-year growth in the first nine months compared to 5.7% in the same period last year, official data showed. 

Ten out of 13 economists surveyed in the poll expect the central bank to keep both its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) unchanged at 7.00% and 8.50%, respectively.

Three economists expected 50-basis-point hike in both policy rates. All 13 economists expect the statutory reserve ratio (SRR) to stay at 7.50%.

“The monetary board will be weighing up domestic and external concerns. Domestically inflation and credit growth are now under control,” said Shiran Fernando, an analyst at Colombo-based Frontier Research. 

“It is difficult to rule out if the Central Bank will raise the rates again because of the external pressure on the rupee.”

The rupee has come under pressure because of lower interest rates, higher imports, and foreign outflows from Government securities last year. 

The currency has fallen around 3.7% since 25 August through Wednesday due to dollar demand from importers and foreign investors who have been exiting from the government securities. 

Foreign investors have net sold Rs. 55.2 billion of Government securities in the nine weeks ended 21 December. 

Fears of U.S. President-elect Donald Trump’s economic policies leading to a rise in the greenback and interest rates have also weighed on the currency.

The International Monetary Fund (IMF) last month said that Sri Lanka’s macroeconomic and financial conditions have begun to stabilise and the island nation’s performance under its $ 1.5 billion loan program is satisfactory.

Private sector credit grew 25.6% in September from a year earlier, still robust but slowing from August’s 27.3% and a near-four year high of 28.5% in July. Inflation rose 3.4% on-year in November, slowing from 4.2% in the previous month. 

The Central Bank has raised both the SDFR and the SLFR by 50 bps each in February and July. That followed an increase of 150 bps in commercial banks’ SRR in December. - See more at:

2CB most likely to keep rates steady Empty Re: CB most likely to keep rates steady on Fri Dec 30, 2016 12:51 pm


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Cannot be commented on data published on inflation related data as the trustworthiness arises similar to part regime. However, further FED rate hike in 2017 would be the major factor towards local rate hike.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum